Whether you have previously owned a home in the past or you are a true first-time homebuyer in Arizona, there are programs available to make the process easier and more affordable. The benefits of owning a home extend to the freedom to do almost whatever you want to your new place of residence. Paint the walls, hang decorations, and make renovations at will.
As you look at the various options available to you, consider what will have the best impact both in the immediate and distant future. In Arizona, this includes the type of loan you get, assistance with the down payment, grants, closing costs, and more.
Finding out what you can qualify for as a first-time homebuyer in Arizona is the best place to start. Looking at variables such as your income and credit score, you’ll be able to determine your potential to get into a new home.
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First-Time Homebuyer Tax Credits & Down Payment Assistance in Arizona
Locals in Arizona get the benefit of numerous programs that are here to help people who are having a hard time affording the home buying process.
Per the Fair Housing Administration (FHA), the state of Arizona has options available for down payment assistance. These come in the form of grants, forgivable loans, and other resources that often also pay for closing costs. None of the programs handle the financing aspect of the loan but simply provide funds that can be applied to specific portions of the process.
Anyone interested in down payment assistance in Arizona should look into each of these options to see which one will work best for them. Each one has its own qualifications and some have restrictions on the type of loan it can be applied to.
Home Plus Down Payment Assistance Program
This helpful option can only be applied to 30-year fixed-rate mortgages. It works well for individuals or families with low to medium incomes that can qualify for a home loan but can’t afford the upfront costs.
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Requirements for eligibility include a 640 credit score or higher, an income lower than $99,170 (income limitation), and a debt-to-income ratio that is lower than 50%. The home purchase cannot be more than $396,680.
Home in Five
The Home in Five systems provides up to 5% assistance for the down payment and closing costs for qualified homebuyers. To be eligible, borrowers must have a credit score of 640, an annual income of less than $108,920, and a 50% or lower debt-to-income ratio.
Pathway to Purchase
The Arizona Department of Housing (ADOH) and Arizona Home Foreclosure Prevention Funding Corporation (AHFPFC) have worked with Pathway to Purchase as a way to provide upfront assistance for down payments and closing costs.
It can be applied for borrowers with incomes of less than $92,984 for homes worth up to $371,936. While it is considered a down payment assistance program in Arizona, it is only available in the cities of Bull Head City, Casa Grande, Glendale, Green Valley, Kingman, Phoenix, Rio Rico, Sahuarita, Sierra Vista, Tucson, Vail, and Yuma.
Other AZ Assistance Programs
Additional options for first-time homebuyers in Arizona can be found for individuals who meet certain specifications. One of them is the Neighborhood Stabilization Program, which assists people in areas that have had past troubles with foreclosures and abandoned properties. It boosts redevelopment efforts by helping individuals who can have a positive impact on the community to get into a home.
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Another popular program for first-time homebuyers in Arizona is the Good Neighbor Next Door, which assists teachers, police officers, EMTs, and firefighters to get homes in revitalized parts of the state.
First-Time Homebuyer Loans in Arizona
While some parts of the U.S. have state-specific home loans for first-time homebuyers, Arizona has the same options that are available across the country. These various loans each have their own designated qualifications and benefits that they offer.
The most common first-time homebuyer programs in Arizona include conventional loans, FHA loans, VA loans, and USDA loans offered by many different lenders.
First-Time Homebuyer Programs in Phoenix, Maricopa County, AZ
Are you looking for first-time homebuyer programs in Phoenix, AZ? By applying through various networks, lenders and real estate agents may be able to point you in the direction of options that may work for you.
Plenty of first-time homebuyer programs in Maricopa County provide ways for people with various incomes and credit scores to get qualified.
The main possibilities available for the area are expanded from the Home Plus program. These include the Fannie Mae HFA Preferred Loan Program, Freddie Mac HFA Advantage Loan Program, Home Buyer Down Payment Assistance Program, and the Home in Five Advantage Program.
Arizona Programs & Loan Options for Homebuyers
Conventional Mortgage
While you aren’t required to be a first-time homebuyer in Arizona to qualify for a conventional loan, it is an option as long as you can qualify. These loans typically require at least a 5% down payment and can only be applied to home purchases up to $510,400. However, there is also the option of Fannie Mae or Freddie Mac loans, which allow down payments as low as 3%.
The benefit of a conventional loan comes in the form of a lower interest rate and more affordable mortgage insurance. In the long run, this means smaller monthly payments for your new home.
FHA Loan
The ideal option for Arizona first-time homebuyers with poor credit, FHA loans tend to have higher interest rates and require more significant mortgage insurance. But it makes homeownership a reality for people who require additional assistance.
Depending on the applicant’s credit score, they will be required to pay anywhere from 3.5% to 10% for the down payment. These amounts can be considered as part of a potential assistance program.
VA Loan
As an option for first-time homebuyers in Arizona who have served in the military, one of the greatest benefits of VA loans that they typically require no down payment. And with the possibility of the seller covering closing costs up to 4% of the sales price, veterans who use this program could potentially avoid paying anything out of pocket for their new home.
USDA Loan
Only available on homes located in suburban or rural areas, USDA loans have the potential for 100% financing. When an applicant qualifies, they may be able to waive any need for a down payment.
FAQs for First Time Homebuyers in Arizona
Are first-time homebuyer programs worth it?
Especially for those who have had difficulty qualifying for any type of loan, Arizona first-time homebuyer programs create opportunities that may be otherwise unavailable. This makes the prospect of using these options worth the time and effort.
Who is considered a first-time homebuyer in Arizona?
The true definition of a first-time homebuyer is someone who hasn’t owned a home or other residential property for at least three years.
Who qualifies for down payment assistance in Arizona?
When it comes to qualifying for Arizona down payment assistance, the requirements change depending on the program. These qualifications range from your income and credit score to other factors.
Find the First-Time Homebuyer Program for You
Are you a first-time homebuyer in Arizona? You’ll be happy to know there is a wide variety of ways you can get help with everything from down payment assistance and closing costs to getting a loan and beyond.
Once you’ve completed the process of purchasing a home, the professional movers here at Mentors Moving are here to help you with the relocation process. Get in touch with us today by calling (480) 376-1009 or complete the Request a Quote form above to get a free moving estimate!
